Commodity Technical Report 14 August,2015 - Emkay Commotrade

By  Paul Ploumis 14 Aug 2015  Last updated at  07:23:22 GMT

Trade Strategies

Daily Commodity Technical

Gold –Daily Chart

Gold: Gold prices have retraced lower towards 25774 over the past two sessions of trade. Failure to break below 25700 on dips will be a positive sign for the counter. Sustenance above 25950 will see prices rally towards 26025 or even move higher towards 26200 levels A daily close below 25700 will see prices dip towards 25525125500 over the coming sessions.

Silver –Daily Chart

Silver: Silver prices are consolidating around 36000 levels Failure to break above 36200 will see prices trade in corrective mode and drift lower towards 35650/35500 levels. A daily close above 36200 will see prices advance towards 36525/36700 levels The outlook for silver will remain positive until prices stay above 35200 levels.

Crude –Daily Chart

Crude Oil (Rs/Bbl): Crude oil prices have hit fresh swing lows of 2732. Sharp intraday spike towards 2770/2800 levels cannot be ruled out in the counter but selling at higher levels can drag prices lower again. A break below 2700 levels will see prices move lower towards 2640 levels. Any meaningful reversal in likely only above 2850 levels.

Natural Gas –Daily Chart

Natural Gas (Rs./Mmbtu): Natural gas prices sold-off post the inventory data and the counter broke below support at 185 levels yesterday. Intraday pullback rallies will face resistance around 185-186 areas. Weakness at higher levels can be sold into by traders. Sustenance below 183 will see prices dip towards 180/179 levels.

Copper –Daily Chart

Copper: Copper prices are consolidating in a tight range between 338 to 342 levels Prices need to decisively breakout above 342 to move higher towards 344 levels. A break below 337 will see prices dip towards next support at 335/334 levels. Any major fall is likely only on a break below 334 levels. Until then dips will find buying support and prices will rebound higher.

Zinc –Daily Chart

 Zinc: We reiterate our positive outlook on zinc until prices stay above 118 levels. Until then intraday dips will find buying support. Sustenance above 120 will see prices move higher towards 120.60/121 levels Next major resistance for the counter is seen between 121.55-122 areas.

Lead: Lead prices will remain positive until prices stay above 112 levels today. Until then traders must use intraday dip towards 113-112.50 levels to go long in the counter. Prices can re-test 114.45 levels. A break out above 114.50 will see prices advance higher towards 115.251115.55 levels. A daily close below 112 will be negative for Lead.

Nickel: Nickel prices couldn't sustain at its intraday highs at 699.40 levels yesterday and prices closed lower at 683.60. Immediate support for the counter is seen around 680 levels. Failure to break below 680 will see prices rebound towards 699/705.50 levels again. Any major upside in the counter is likely only once prices break above 706 levels. A daily close below 680 will see prices dip towards 670/665 levels.

Aluminium: Aluminium prices couldn't breakout above the higher end of its trading range at 102.60 levels. Failure to trade above 102 will see prices drift lower towards 100.90/100.50 levels. Areas between 100.50-100 areas strong support levels for aluminium. A daily close above 102.60 will see prices 103.25/103.55 levels.

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